Applying for a business loan can be intimidating, especially if you have been denied for a business loan in the past. Many business owners avoid applying for funding because they’re afraid of being rejected or because the application process is long and complicated.
If you’ve been turned down by banks for traditional business loans, and you’re looking for a way to fund your next equipment purchase or investment in your team, a small business loan backed by the Small Business Administration (SBA) may be a good option for you. Many business owners find the process is less complicated than applying for traditional lending, putting money in their pockets faster so they can invest in the growth of their business.
Discover if You’re Eligible for an SBA Loan
The SBA offers several different small business loan programs, each with specific eligibility requirements. A loan program may require a business to be a certain size, within a certain industry, or demonstrate the ability to repay the loan.
Generally, most SBA loans require the following for businesses to be eligible for funds:
- For-profit business officially registered and operating legally
- Physically located within the United States
- Owner has equity invested in the business through time and/or money
- Other traditional funding options have been exhausted
If your business meets these general requirements, an SBA loan may be a good option for you. If not, other funding options may be available.
Learn about Popular SBA Loan Programs
Two of the most popular SBA loan programs are the 7(a) loan and the 504 loan. The 7(a) loan is the SBA’s flagship program. A standard 7(a) loan offers approved small businesses up to $5 million in as little as 5 to 10 business days. No collateral is required for loans under $25,000. Other 7(a) loans, such as the 7(a) small loan, SBA Express, and Veterans Advantage, may also be available.
The SBA 504 loan program can cover up to $5.5 million for real estate purchases, construction and land improvements, equipment, and refinancing of debt related to business expansion. The program is offered through non-profit community lending partners as a way to drive economic development.
Starting February 2021, the SBA is waiving the guarantee fee as well as the first 6 months of payments, up to $9,000. Loan applicants will also enjoy a 90% bank guarantee, which will make it easier for many applicants to be approved.
Work with an SBA Loan Specialist
Learning about your SBA loan options can be difficult and frustrating on your own. Instead, work with a trusted partner who can help you understand your options and find the right solution for you. Contact the Legendary Capital Solutions team to learn more.
Disclaimer: The contents of this website do not constitute financial advice and are provided for general information purposes only. If you require specific financial advice, you should contact a financial advisor. We can only advise on the basis of specific client instructions and are unable to offer financial advice by email to people who are not our clients. To learn how to become a client of Legendary Capital Solutions, please contact us.